In the United Kingdom, the currency drain ratio is 0.38 of deposits and the reserve ratio is 0.002. In Australia, the quantity of money is $150 billion, the currency drain ratio is 33 percent of deposits, and the reserve ratio is 8 percent. a. Calculate the U.K. money multiplier. b. Calculate the monetary base in Australia.
In the United Kingdom, the currency drain ratio is 0.38 of deposits and the reserve ratio is 0.002.. 1 answer below »
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